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EMCOR Group Inc (NYSE:EME)
Beneish M-Score
-2.55 (As of Today)

The zones of discrimination for M-Score is as such:

An M-Score of less than -2.22 suggests that the company is not an accounting manipulator.
An M-Score of greater than -2.22 signals that the company is likely an accounting manipulator.

EMCOR Group Inc has a M-score of -2.55 suggests that the company is not a manipulator.

EME' s Beneish M-Score Range Over the Past 10 Years
Min: -3.12   Max: -0.99
Current: -2.55

-3.12
-0.99

During the past 13 years, the highest Beneish M-Score of EMCOR Group Inc was -0.99. The lowest was -3.12. And the median was -2.47.


Definition

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Z-Score) or business trend (F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of EMCOR Group Inc for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 1.0086+0.528 * 1.0317+0.404 * 1.0107+0.892 * 1.0969+0.115 * 1.0324
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9501+4.679 * -0.0364-0.327 * 1.0819
=-2.55

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

This Year (Jun16) TTM:Last Year (Jun15) TTM:
Accounts Receivable was $1,448 Mil.
Revenue was 1933.416 + 1744.97 + 1777.826 + 1699.128 = $7,155 Mil.
Gross Profit was 274.741 + 223.108 + 252.621 + 235.402 = $986 Mil.
Total Current Assets was $2,142 Mil.
Total Assets was $3,800 Mil.
Property, Plant and Equipment(Net PPE) was $128 Mil.
Depreciation, Depletion and Amortization(DDA) was $77 Mil.
Selling, General & Admin. Expense(SGA) was $683 Mil.
Total Current Liabilities was $1,393 Mil.
Long-Term Debt was $510 Mil.
Net Income was 55.38 + 34.348 + 51.066 + 41.522 = $182 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 84.946 + -37.161 + 171.085 + 101.647 = $321 Mil.
Accounts Receivable was $1,309 Mil.
Revenue was 1652.585 + 1589.187 + 1714.796 + 1566.711 = $6,523 Mil.
Gross Profit was 239.527 + 216.929 + 248.573 + 222.229 = $927 Mil.
Total Current Assets was $1,938 Mil.
Total Assets was $3,418 Mil.
Property, Plant and Equipment(Net PPE) was $119 Mil.
Depreciation, Depletion and Amortization(DDA) was $74 Mil.
Selling, General & Admin. Expense(SGA) was $655 Mil.
Total Current Liabilities was $1,274 Mil.
Long-Term Debt was $308 Mil.



1. DSRI = Days Sales in Receivables Index

Measured as the ratio of days’ sales in receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(1448.323 / 7155.34) / (1309.095 / 6523.279)
=0.20241149 / 0.20068052
=1.0086

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(927.258 / 6523.279) / (985.872 / 7155.34)
=0.142146 / 0.13778129
=1.0317

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than plant, property and equipment to total assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (2141.908 + 128.376) / 3800.366) / (1 - (1937.734 + 118.529) / 3417.786)
=0.40261438 / 0.39836403
=1.0107

4. SGI = Sales Growth Index

Ratio of sales in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=7155.34 / 6523.279
=1.0969

5. DEPI = Depreciation Index

Measured as the ratio of the rate of depreciation in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(74.422 / (74.422 + 118.529)) / (76.572 / (76.572 + 128.376))
=0.38570414 / 0.37361672
=1.0324

6. SGAI = Sales, General and Administrative expenses Index

The ratio of SGA expenses in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(682.804 / 7155.34) / (655.2 / 6523.279)
=0.09542579 / 0.10044028
=0.9501

7. LVGI = Leverage Index

The ratio of total debt to total assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase$sgai= in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((509.841 + 1392.661) / 3800.366) / ((307.523 + 1273.965) / 3417.786)
=0.5006102 / 0.46272294
=1.0819

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(182.316 - 0 - 320.517) / 3800.366
=-0.0364

An M-Score of less than -2.22 suggests that the company will not be a manipulator. An M-Score of greater than -2.22 signals that the company is likely to be a manipulator.

EMCOR Group Inc has a M-score of -2.55 suggests that the company will not be a manipulator.


Related Terms

Altman Z-Score, Piotroski F-Score, Accounts Receivable, Revenue, Gross Profit, Total Current Assets, Total Assets, Property, Plant and Equipment, Depreciation, Depletion and Amortization, Selling, General & Admin. Expense, Total Current Liabilities, Long-Term Debt, Net Income, Non Operating Income, Cash Flow from Operations


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

EMCOR Group Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 1.1930.98090.76890.92951.180.94110.93211.01520.95931.0537
GMI 0.93730.95040.90740.87891.04021.09321.00751.00030.91871.0045
AQI 0.92891.65481.02541.00780.81451.29890.94051.33850.99940.9396
SGI 1.06721.20921.14480.81760.87461.15691.10371.02231.01441.0457
DEPI 1.13910.92870.92711.00631.03380.92821.00780.97240.9321.0017
SGAI 1.00650.94691.0121.14030.99430.94850.95051.0451.06361.0022
LVGI 0.98411.04630.93111.04370.85310.98050.94681.01121.00131.0237
TATA -0.0582-0.08-0.0504-0.0665-0.0596-0.0062-0.0122-0.0076-0.023-0.0266
M-score -2.56-2.46-2.83-3.12-2.71-2.25-2.50-2.36-2.67-2.54

EMCOR Group Inc Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI 0.9710.90080.93390.96630.981.06671.03291.05371.02691.0086
GMI 0.99570.94180.92370.90590.92960.96750.99661.00451.02211.0317
AQI 1.32391.36420.99980.99941.00290.97180.96140.93960.94491.0107
SGI 1.02841.03331.02721.00711.00341.01961.04661.04571.07021.0969
DEPI 0.94550.91560.88670.9320.95270.98790.98851.00171.01481.0324
SGAI 1.0521.06231.0641.05971.08391.06541.02561.00220.96080.9501
LVGI 1.02020.98060.94461.00131.02181.0431.01361.02371.01761.0819
TATA -0.0252-0.0259-0.0055-0.023-0.028-0.0099-0.02-0.0266-0.0213-0.0364
M-score -2.49-2.56-2.59-2.68-2.69-2.50-2.53-2.54-2.50-2.55
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